The table below provides IPC limits for conventional mortgages.
IPCs that exceed these limits are considered sales concessions. The property’s sales price must be adjusted downward to reflect the amount of contribution that exceeds the maximum, and the maximum LTV/CLTV ratios must be recalculated using the reduced sales price or appraised value.
|Occupancy Type||LTV/CLTV Ratio||Maximum IPC|
|Principal residence or second home||Greater than 90%||3%1|
|75.01% – 90%||6%|
|75% or less||9%|
|Investment property||All CLTV ratios||2%|
For additional information, see B3-4.1-02, Interested Party Contributions (IPCs)